‘Change was necessary,’
World Wrestling Entertainment Inc. (NASDAQ: WWE) just fired two top executives, including co-president, George Barrios after 2019 earnings came in at the low end of estimates, with CEO Vince McMahon commenting "Change was necessary." The company's stock subsequently plunged as much as 24 percent.
Lemelson Capital Management (LCM) previously called for the replacement of WWE's executive management team (specifically Barrios) or a sale of the company. In late 2016, McMahon acknowledged he was "Open to anything," when asked about a potential take over.
These changes follow the recent departure of Geospace Technologies (NASDAQ: GEOS) CFO after Lemelson had also called for his removal.
On December 22, 2014, in a live interview on Benzinga, Rev. Fr. Emmanuel Lemelson, stated:
There was evidence if you know anything about the leadership, that they were probably not going to deliver... under George Barrios, the company has consistently lost money for the last three or four years, free cash flow, eps, all in big trouble... if and when there is a change in the ledership of that company, there's a potential for the unlocking of tremendous value..."
The interviewer then asked Fr. Emmanuel, if he thought he needed to get involved as an activist, to which he responded:
I don't think it's necessary, these changes are going to happen on their own... there's already been a great deal of light shed on the company from our reports,"
To listen to the full December 22, 2014 interview, click below:
On April 27, 2015, in a live interview on Benzinga, Rev. Fr. Emmanuel Lemelson, continued:
I think it's important not to confuse the fervor of the fans and their feelings about the brand, for wise fiscal management, which the company needs very badly, but increasingly it's probably out of reach, because of corporate governance issues,"
To listen to the full April 27, 2015 interview, click below:
Disclosure: Lemelson Capital Management is long shares of GEOS on behalf of its investors in The Amvona Fund, LP.
About Lemelson Capital Management
Lemelson Capital Management, LLC is a private investment management firm focused on deep value and special situation investments. For more information, visit: http://www.lemelsoncapital.com or follow on Twitter @LemelsonCapital.
About Rev. Fr. Emmanuel Lemelson:
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